Research Report-group 4

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    Marketing Research on

    Factors affecting the purchasing behavior of consumer

    for laptops.

    Submitted to :-

    Prof. Sunanda Sangwan.

    Jindal Global Business School

    (For the partial fulfillment of Research Project work for MBA course)

    Submitted by :

    Group 4

    Rajkumar Singhania (JGU ID 20110316)

    Priyanka Brar (JGU ID 20110035)

    Jenish Saroha (JGU ID 20110019)

    Sunny(JGU ID 20110051)Saurabh Malik(JGU ID 20110046)

    Dushyant Singh(JGU ID 20110013)

    Date of Submission: October 5, 2011

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    Introduction:

    The Indian laptop industry has been witnessing a boom in recent times. The sales are increasing

    and the falling prices and new technologies have also affected the growth of the industry. Ultra-

    slick laptops, notepad, tablets and other version of products are available nowadays. The

    development of wireless network and the growing importance of internet have given a further

    boost. At the time when Indian PC market is experiencing slowdown, market players are

    focusing on new growth drive through low price laptops 'notebooks'. While the average price of

    a PC is Rs 20,000, the price of an entry level notebook starts from Rs 35,000. Note book vendors

    like Lenovo, HP, LG, Acer, HCL, Dell and Toshiba have launched new models with value added

    features. Lenovo has introduced N100 in the notebook segment. It gives a better impression with

    its processing power (Intel's core duo processor). Apple computers made a dynamic entry into

    the notebooks' market with Intel processors. Hewlett-Packard (HP), Fujitsu, Lenovo and even

    Sony have launched notebooks in the sub-Rs 70,000 bracket. HP India has launched the HP

    Pavilion notebook, decked up with HP's Imprint Finish technology.

    The real opportunity is now to exploit the market to its fullest potential. Companies are trying

    hard to differentiate their products, despite various standardizations like Centrino. Security

    features like biometric technologies are being built into laptops. The products are even

    customized on user profile. For instance, corporate professionals typically prefer features like

    wireless connectivity, long battery life, low weight and flexible configurations, whereas students

    prefer enhanced sound and video capabilities, higher storage space.

    Objective of the research:

    The objective of the study is to find out the factors affecting the psychology of the consumers i.e.

    their tastes and preferences, their attitude, their spending patterns etc. and how do they adaptthemselves towards the changing trends in the market and what a marketer should do in order to

    improve the strategies, adapt to the new changes. The study is narrowed down to the consumer

    behavior pattern for laptops purchasing.

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    Literature Review:

    Consumer behavior study is of immense importance and a topic of interest for various groups for

    a long time. There are a lot of ambiguities related to the factors which affect consumer behavior

    for any purchase decision. So many researchers have tried to develop various models of

    consumer behavior. The literature review on the consumer behavior pattern of seafood products

    (Nashwa et al, 2001) reveals the logit model showing the purchase choice is a function of two

    explanatory variables classified as form of purchase (whole fish, fillets, and slices) and place of

    purchase ( On-shore market, fisheries company, supermarket, fish shop and retailer) which are

    affected by various independent variables like household size, education, age, family income,

    product attributes like price, odor, moistness, flavor, overall attractiveness etc. The research

    paper on the purchase behavior of fashionable ethnic wear in India (Somnath, 2010) shows five

    factors explaining 62% of the variance. Moore and Goldsmith (1998) highlight twelve attributes

    which are important in the purchase of clothes and include good fit, good price, comfort, quality,

    attractiveness, fashionableness, brand name, appropriateness for occasion and choice of style

    among others.

    Research Design:

    Based on the various literature reviews and experts opinion and general survey, the factors

    affecting the consumer purchasing behavior of laptops can be explained by three categories of

    explanatory variables. The purchase behavior are likely to be affected by the demographic

    factors of the consumer like income of the individual or his/her family (if not earning member),

    age of the person, education level, gender, and occupation. The consumer purchase behavior may

    be affected by his/her perception of the products like the product knowledge and brand loyalty.

    The third category of independent variables are the product attributes of the laptops/notebooks

    which are product features, country of origin, availability of products, price etc.

    Research Model:

    Purchasing behavior of laptop = f (explanatory variables)

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    Independent Variables

    Demographic factors of consumer Age

    Gender

    Education

    Occupation

    Income

    Product Perception by consumer Brand loyalty

    Product knowledge

    Product involvement

    Product attributes Product featuresProduct quality

    Country of origin

    Availability of product

    Price of the product

    After sales service

    Hypothesis:

    H1: The purchase behavior of a consumer for laptop is likely to be affected by the demographic

    factors of the consumer.

    PURCHASING

    BEHAVIOUR FOR

    LAPTOP

    Demographic factors of consumer

    Production erce tion of consumer

    Product attributes of la to

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    H2: The purchase behavior of a consumer for laptop is likely to be affected by the product

    perception of the consumer.

    H3: The purchase behavior of a consumer for laptop is likely to be affected by the product

    attributes of the consumer.

    Research Methodology:

    Based on the above hypothesis as listed earlier, a questionnaire has been prepared. The target

    population for the research study consists of the students from the Jindal Global University,

    employees of a company, friends, and the general public. The sample size would be from 300-

    500. The sample would be selected based on the random sampling and convenience sampling.

    The data would be collected by one-to-one interview, and by mails. There is the limitation of

    having the lesser number of female members in the sample and there is more chances of the

    number of male candidates, so the chances of biasing based on gender is possible. Also it would

    not be practical to cover all the factors equally on our sample. The laptops are normally used by

    the educated population, so the sample would be more concentrated to the educated people and

    the professionals.

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    Questionnaire:

    QUESTIONNAIRE:

    We are students of JGBS and currently conducting a survey about the factors affecting the consumer purchase behavior for laptops. We

    will appreciate if you could spend a few minutes to complete this survey questionnaire. Your identity remains anonymous.

    Note: The laptops have been successful in replacing the desktop computers because of the ease of use and its portability. With the

    technology improvement, nowadays other similar utility products are available like tablet PC, smart phones etc.

    Instructions:

    1. Please fill up the questionnaire as you read the questions. We wish to capture your first response.2. Please do not revisit the questions once they are filled up. There are no right or wrong answers.3. Pls. complete all the questions below.4. When unclear, you may write something for researchers

    1. Do you have a laptop / notebook / tablet?

    Laptop Notebook Tablet PC

    None

    2. If yes, about how long have you been using?

    Less than 1 year 1-3 years 3-5 years Greater than 5 years

    None

    3. Which brand of laptop do you have?

    Apple Dell HP/Compaq Lenovo

    Others (please specify) ______________

    4. If given choice which brand of laptop would you prefer?

    Apple Dell HP/Compaq Lenovo

    Others (please specify) ______________

    5. What price range of laptop you are comfortable to buy?

    Less than 25000 25000-40000 41000-55000

    More than 55000

    6. Who influences the purchase decision in your family for buying laptop?

    Husband Wife Children Peer group

    Others (please specify) ______________

    7. Rate attributes of laptop that you look for in a laptop. (Give more number to those which you prefer more)

    Less Important More Important

    1 2 3 4 5

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    Brand:

    Quality:

    Price:

    Usage:

    Configuration:

    Design:

    Color:

    8. Age:

    Under 25 25-35 36-45 46-55 Over 55

    9. Gender

    Male Female

    10. Education

    Secondary School/High School Undergraduate Graduate Post Graduate and Above

    11. Current Occupation (you may click two if applicable)

    Full-Time student Professional Managerial Self-Employed

    12. Monthly disposable income.

    Less than 10000 10000-30000 30000-50000 Greater than 50000

    Thank you for taking your time to complete this survey! -

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    References:

    Morven, G. McEachern & Warnaby G. (2008) Exploring the relationship between consumer

    knowledge and purchase behavior of value-based labels.International Journal of Consumer

    Studies, 32, 414-426.

    Chakrabarti S. (2010). An Empirical Analysis of the Influence of Consumer Evaluation

    Attributes in the Purchase of Fashionable Ethnic Wear in India. Journal of Marketing &

    Communication, Vol.6 Issue 1.

    Al-Mazrooei N.,Victoria G. & Omezzine A.(2001). Consumer Purchase Behaviour of Seafood

    Products in Oman. Journal of International Food & Agribusiness Marketing, Vol. 13(4).

    Lin L.Y. & Shuo C.C.(2006). The influence of the country-of-origin image, product knowledge

    and product involvement on consumer purchase decisions: an empirical study of insurance and

    catering services in Taiwan. The Journal of Consumer Marketing 23.5:248-265.

    Heike S. (2010). Effects of counterfeits on the image of luxury brands: An empirical study from

    the customer perspective.Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18,2,

    159-173.

    Mugaonkar P., Ananthan P.S., Samal S.S. & Debnath B.(2011). A Study on Consumer

    Behaviour at Organized Fish Retail Outlet. Agricultural Economics Research Review Vol. 24 pp

    133-140.

    Ozok A., Benson D., Chakraborty J. & Anthony F.(2008). A Comparative Study Between Tablet

    and Laptop PCs: User Satisfaction and Preferences.International Journal of Human Computer

    Interaction, 24:3, 329-352.

    Khan M.(2005). The Relative importance of the factors influencing consumer perception of

    product quality across cultures: A two country empirical analysis. ProQuest Informatin and

    Learning Company.

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    Manaktola K. & Jauhari V. (2007). Exploring consumer attitude and behavior towards green

    practices in the lodging industry in India. International Journal of Contemporary Hospitality

    Management, Vol.19 No. 5, pp 364-377.

    Ray S.(2009). Building a Model for Purchase Decision of Laptops and Price-Performance

    Analysis of Major Players. The Icfai University Press.